The Sigma Whole Europe Index had a negative session on Tuesday. Nevertheless, as long as it remains above the red horizontal resistance, we can consider this as a normal consolidation after the huge run up of the 16 latest sessions (14up vs 2 down).

Looking at our indicators, the Sigma Trend Index slightly declined and both the Swing and the Power Level (PL) declined below 3 => The ST model generated a 'sell' signal on Europe.

As we were busy with customers yesterday, we opened our short positions this morning and we sold:

- 1 CAC @ 4659.35

- 1 DAX @ 10699.75

- 1 EUStoxx @ 3392.5

- still waiting for the opening of the IBEX's CFD

The Sigma Whole Market Index was under heavy selling pressure following in line results but very bad guidance from both Microsoft and Caterpillar. Nevertheless, with the strong results from AAPL and YHOO (in after hours), US futures are jumping tonight and it will be very interesting to monitor if the gap at the open can resist to selling pressure or if it is closed during the first hours of the session.

Don't forget we have the FOMC on Wednesday and we continue to believe that J. Yellen will underline the strong usd and its possible implications on the US economy. By doing so, she will postpone rate hikes expectations. We believe it will have no rate hike in 2015. (we know this is not the consensus but this is our personal view).

The Sigma Trend Index is testing its zero line. The Swing came in at '1' and tells us the decline was highly impulsive.

The Sigma Whole Europe Index continued its rally on Friday. Current move is impressive. We believe we should get a consolidation in coming sessions in order to retest the red horizontal resistance. If the market can remain above the red horizontal resistance, a new upleg is possible.

Looking at key European Indexes, we can notice the Euro zone area is in a bull run while the FTSE and the SMI don't experience the same rally. It is clear that the weaker euro is a strong tailwind for the Eurozone area.

The Sigma Trend Index came in at '74' and the Swing came in at '5'. The market has been able to book 7 consecutive (positive) impulse session. The market is so overbought (on short term basis) that a 'sell' signal seems unavoidable.

The Sigma Whole Market Index was unable to hold its gain on Friday. At the end of the session, the market came under selling pressure. It is clear the strong USD weights on corporate profits and competitiveness. 

Looking at key US indexes we can notice they are not in the same situation than the European market: most of them are not close to their recent top. The DJ Utilities is the big exception and it is probably due to dividend yield hunting in this weak interest rates environment.

The Sigma Trend Index close the week above its zero line, this is a positive sign for the US equity market..

The Sigma Whole Europe Index was able to move above the first pink horizontal resistance. There is a high probability the market could test the red horizontal resistance on the ECB' decision. In order to open the way for further gains, we need a close above the red horizontal resistance.

Looking at key EU indexes, we can see various situations: some indexes are printing new highs while other indexes remain in the middle of their trading range.

The Sigma Trend Index Europe remains above the key '34' level. So, any impulse move to the downside in the next 3 sessions will trigger a 'sell' signal. The 5 latest sessions were impulsive, this is rather unusual: either we are at the early stage of a major move or we are in a capitulation situation. But the rally is so extended on a short term basis that we believe a sell on news (after the ECB's decision) is likely.

The Sigma Whole Market Index remains above a strong horizontal resistance but recent action is not really convincing for a bull run. It seems we could be in a counter trend move.

Looking at key indexes, we have roughly the same situation than in Europe: some indexes are close to their recent top while others remain in the middle of their recent trading range.

The Sigma Trend Index is testing its zero line. So, US markets are not out of the wood, recent action could have been a technical rebound.

The Sigma Whole Europe Index enjoyed another strong session on Monday and it is now right below a major resistance. If the market can move above this level, this will be a very good sign for the market.

Looking at major European indexes, we can see the DAX is in record territory while the CAC and the Small200 are right below major resistance.

The SMI remains above its strong support area.

The Sigma Trend Index reached the key '34' level. So, if the Swing and/or the Power Level decline at (or below) '2' in the next 3 sessions, the ST model will trigger a Sell signal.

The Sigma Whole Europe Index is right below the first pink horizontal resistance. According to futures, the market should be able to test the next horizontal resistance during the session. It will be interesting to monitor what happens around this level.

As the volatility of the European volatility is declining, the market could enjoy a bounce back in coming sessions.

Looking at key EU indexes, we can notice the SMI was not able to remain above its previous top (should be ok today),the FTSE was under heavy selling pressure (due to miners and oil companies)

The Sigma Trend Index is close to its zero line. The Swing came in at '1', telling us the decline was highly impulsive.

The Sigma Whole MArket had a difficult session on Wednesday as it declined below the pink horizontal resistance. Nevertheless, it was able to close well above its intraday low and it rebounded on the red dotted ascending line. So, once again, it is difficult to turn extremely bearish at this stage.

The Sigma Smart Money Index (SSMI) continues to decline but it hasn't been abe to print any new low in recent sessions. So, all in all, this is not bad.

Looking at key US indexes, we can notice that the DJ Transport is the most advance in the decline but as it was able to rebound on the December's low, the situation is not so bad. This index is the key one to ficus on in coming sessions

The Sigma Trend Index declined to '-8'. The Swing came in at '2'.

For te second time this year, our position on the SPX was stopped at the intraday low, grrrrrrrr...

- SPX: 1988.67 - 2026.41 = - 37.74 (loss)